Regulators Promise Changes for Applying ‘Systemic’ Label

Companies to Be Notified Sooner of Potential Status

WASHINGTON—Senior U.S. regulators said they would change the way they identify big financial firms that could pose financial-system risk, a move made amid criticism from lawmakers and others about the Financial Stability Oversight Council’s selection process.

FSOC, created by the 2010 Dodd-Frank law, has faced criticism that it doesn’t give companies enough notice to challenge decisions. Firms that are designated as “systemically...